Cryptocurrency exchange operator Bullish confidentially filed for an IPO in recent weeks, the Financial Times reported, citing people familiar with the matter. This report comes a week after rival Gemini shared a similar announcement. Bullish, backed by PayPal co-founder and venture capitalist Peter Thiel, aims to tap into rising investor interest in cryptocurrencies under the Trump administration, according to the report.
A confidential IPO filing with the US markets regulator, the Securities and Exchange Commission (SEC), enables a company to take their listing plans forward before revealing their financials closer to the actual fundraising period. To be sure, Bullish attempted to go public in 2021 through a special purpose acquisition vehicle deal, which was shelved in 2022 since markets dived owing to a rise in interest rates in the US.
Reports of Bullish’s IPO filing follow a pattern of similar filings by crypto exchanges seeking a public listing under US President Donald Trump, whose administration has nixed some regulations of his predecessor to promote a more open stance towards cryptocurrencies. Digital coins have also gained public acceptance with Trump issuing an executive order to create a strategic bitcoin reserve and a stockpile of digital assets. The Trump administration has also floated the GENIUS Act Bill which is focused on the regulation of stablecoins — cryptocurrency backed by a fixed asset or currency.
Another important connection shared by these IPO-bound crypto exchanges is their ownership, which comprises individuals who contributed to Trump’s presidential campaign. The Trump family’s business interests in the crypto field, including memecoins of Trump and his wife Melania have also inspired confidence among the larger crypto community.
Other crypto-linked IPOs
Gemini Space Station Inc, the crypto exchange owned by the Winklevoss twins — known for suing Mark Zuckerberg for allegedly stealing their idea to set up social networking site Facebook — on June 6 announced that it had confidentially filed a draft statement with the SEC related to a proposed initial public offering. Without disclosing the potential IPO size, it said the SEC was reviewing the application.
Founded by twins Cameron and Tyler Winklevoss in 2014, the company reached a $5 billion settlement in January with the Commodity Futures Trading Commission. In February, the SEC closed a probe into Gemini without recommending any further action, CNBC reported.
The Winklevoss twins contributed $2 million to Trump’s election campaign citing what they called previous President Joe Biden administration’s “war on crypto”. However, they were refunded a portion of their contribution for exceeding the cap on crypto-based donations, Bloomberg reported.
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Stablecoin issuer Circle’s successful listing last week generated significant interest in cryptocurrencies. The company’s stock listed at a premium over the $31 apiece IPO price on the New York Stock Exchange.
Circle Internet Group’s stock price surged to $88 apiece, a 180 per cent premium over what institutional investors paid for the stock.
After listing on the NYSE at $69 apiece, Circle Group’s stock closed at $83.23 apiece on June 5, before surging higher to $107.70 apiece the next day and $115.25 per share on June 9. The company’s share price eased over 8 per cent to $105.91 apiece on Tuesday.
Circle Group is the issuer of the USDC, the second largest stablecoin available to investors after Tether’s USDT. Stablecoins are cryptocurrencies that are indexed to an asset — mostly the US dollar in case of cryptocurrencies.
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Impact of Circle Group’s IPO on crypto stocks
Apart from spurring a spate of crypto IPOs, Circle Group’s record listing also led to a surge in the stocks of US-based crypto exchange operator Robinhood.
Another crypto exchange operator Coinbase’s stock was added to the S&P 500 index last month, in a move that indicates the gradual relaxation of a hands-off approach towards cryptocurrencies.
During the same week as the listing of Circle Group’s stock, a filing was made for a Truth Social Bitcoin exchange trade fund by the Trump Media and Technology Group Corp. The company’s stock price closed 1.46 per cent lower on Tuesday.
According to banking giant Standard Chartered, the stablecoin market is projected to grow up to $2 trillion in value by 2028 compared to $247 billion right now if the US passes the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
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Passed by the Senate last month, the GENIUS Act aims to encourage the issuance of stablecoins by private companies. The bipartisan bill aims to regulate blockchain technology in a change of tack from the Biden administration which took an arm’s length approach towards cryptocurrency.
By confidentially filing for an IPO, Bullish also underlines a key link to Trump — PayPal founder and crypto backer Thiel, who wields influence in the Trump administration with key appointments seen to be his proteges. Apart from his PayPal co-founder Elon Musk, who recently quit the Trump 2.0 administration as head of the Department of Government Efficiency, the White House crypto and AI czar David Sacks is also known to be close to Thiel. He is also said to have been instrumental in introducing Trump to his future Vice president J D Vance, according to a Fortune profile of the PayPal founder.
The Trump administration has also infused confidence among crypto enthusiasts through the announcement of a strategic crypto reserve comprising five digital tokens, which may have been accrued by the government as part of regulatory proceedings. That said, Trump also announced his own meme coin $TRUMP and another one in his wife’s name, MELANIA. Last month, Pakistan’s Crypto Council inked an agreement with the World Liberty Financial Inc (WLFI) backed by Trump’s children. These domestic and international moves by Trump in his administrative and personal capacity have reinvigorated investor confidence in cryptocurrencies.